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Williams Sisters Specialties produces three versions of tennis racquets: wood, aluminum, and carbon fiber. A condensed segmented income statement for a recent period follows: Wood

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Williams Sisters Specialties produces three versions of tennis racquets: wood, aluminum, and carbon fiber. A condensed segmented income statement for a recent period follows: Wood Aluminum Carbon Fiber Total Sales $700,000 $300,000 $100,000 $1,100,000 Variable expenses 500.000 210.000 87.000 797.000 Contribution margin 200,000 90,000 13,000 303,000 Fixed expenses 100.000 50.000 32.000 182.000 Net income (loss) $100.000 $.40.000 $112.000) $121,000 Assume one-half of the fixed expenses for the carbon fiber line are avoidable. What will be total net income if the line is dropped? $124,000 $61.500 $127.000 $140,000

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